Material Management Multiple Choice

Questions with Answers

Raw Materials and WIP can be classified under ________

a. Indirect Material

b. Direct Material

c. Finished Material

d. Standard Parts

View Answer- b

_________ are the basic materials which have not undergone any conversion since their
receipt from suppliers.

a. WIP

b. Raw Material

c. Finished Parts

d. Work Made Parts

View Answer- b

Buying according to the requirements is called ________

a. Seasonal Buying

b. Hand to mouth buying

c. Scheduled Buying

d. Tender Buying

e. Speculative Buying

View Answer

b. Hand to mouth buying

Which is not a part of 5R’s of buying?

a. Right Quality

b. Right Quantity

c. Right Source

d. Right Price

e. None of the above

View Answer

e. None of the above

The business cycle, price trends, National Economy is ___________

a. Micro Factors

b. Macro Factors

c. Controllable Factors

d. None of the above

View Answer

b. Macro Factors

__________ also called part lists or building lists is the document generated at the design
stage.

a. MRP (Material Requirement Planning)

b. BOM (Bill of Materials)

c. MPS (Master Production Schedule)

View Answer

b. BOM (Bill of Materials)

Purchasing responsibilities can be divided into Buying, Clerical and ________ division.

a. Packing

b. Traffic
c. Record

d. Follow up

View Answer

b. Traffic

The first activity of Purchasing cycle is _____________

a. Communicating requirement to the purchase

b. Source Selection and development

c. Recognizing the need for procurement

d. Inspection of goods

View Answer

c. Recognizing the need for procurement

________ is the time that elapses between issuing replenishment order and receiving the
material in stores.

a. Replenishment time

b. Lead time

c. Idle-time

d. None of the above

View Answer

b. Lead time

_________ is the scientific technique for planning the ordering and usage of materials at
various levels of production and for monitoring the stocks during these transactions.

a. MPS

b. MRP

c. BOM

d. None of the above

View Answer-

b. MRP (Material Requirement Planning)

_________ is the task of buying goods of the right quality, in the right quantities, at the
right time and at the right price.

a. Supplying

b. Purchasing

c. Scrutinizing

d. None of the above

View Answer

b. Purchasing

Procuring an item in staggering deliveries according to the delivery schedule finished to the
supplier by the buyer.

a. Seasonal Buying

b. Hand to mouth buying

c. Scheduled Buying

d. Tender Buying

e. Speculative Buying

View Answer

c. Scheduled Buying

Buying of the annual requirements of an item during its season is called _______

a. Seasonal Buying

b. Hand to mouth buying

c. Scheduled Buying

d. Tender Buying

e. Speculative Buying
View Answer

e. Speculative Buying

Tips/Suggestions: Do not get confused with seasonal buying